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While the April 2 tariff announcements were more severe than anticipated, Vanguard’s active fixed income managers were well-prepared for the subsequent market reaction, having trimmed credit risk and moved up in quality, while utilizing duration as a hedge. Amid continued market and policy uncertainty, fixed income remains a crucial component of a diversified investment strategy—serving as a long-term portfolio ballast and providing attractive yields by historical standards.

Putting recent market volatility into historical context can help clients tune out the noise and focus on the long term. This article emphasizes the enduring value financial advisors provide clients as they guide them through market uncertainty.

Something had to be the catalyst. After a steady, upward march of U.S. equities valuations, especially those of large growth companies, something had to precipitate a reversal. We know now, after three days of sharp global stock market losses and dizzying volatility, that the April 2 U.S. tariff announcements were that catalyst.

In six brief videos, Vanguard Global Chief Economist Joe Davis and Head of Wealth Management Massy Williams discuss market volatility, the near-term economic outlook, the power of a diversified portfolio, the risk of recession, economic and market forecasting as a form of risk management, and the power of sound financial advice.

We provide some perspective for investors following the April 2 U.S. trade announcement.

Vanguard Canada's Senior Investment Strategist explores the impact of tariffs on the Canadian economy, highlighting some key takeaways for financial advisors.

To understand the challenges of managing bond index funds, consider two data points: The Bloomberg U.S. Aggregate Bond Index contains more than 13,000 securities, while the CRSP U.S. Total Market Index comprises about 3,600 securities. The breadth of the fixed income market is just one of the challenges bond index fund managers face.

Investors are uneasy. To make sense of today’s volatility, it can be helpful to look at the past. It demonstrates that volatility isn’t one-directional or constant in magnitude, nor is it always spurred by the same type of risk.

Pending tariffs might mean greater risk in the markets but also opportunities, says Vanguard President and CIO.

With the prospect of new tariffs being rolled out by the United States and its trading partners, we asked Vanguard Senior International Economist Kevin Khang, Ph.D., for his perspective on the potential implications they might have on industry sectors, economies, and financial markets.

News of an open-source artificial-intelligence model that could potentially rival current models at significantly lower cost caused tech shares to tumble recently, as investors began to question the value of the industry’s more established players. We asked Vanguard Global Chief Economist Joe Davis for his perspective on current market valuations and what the future might hold, especially given his team’s ongoing research on “megatrends” and its views of AI’s potential to fundamentally change the economy.

As we reflect on the investment returns for 2024, it’s clear that the year provided strong returns for diversified, balanced investors who were able to tune out the noise.